Nine-monthsales 2020
Nine-monthsales 2020
Disclaimer
2 Nestlé nine-month sales 2020
This presentation contains forward looking statements which reflect
Management’s current views and estimates. The forward looking statements
involve certain risks and uncertainties that could cause actual results to differ
materially from those contained in the forward looking statements. Potential
risks and uncertainties include such factors as general economic conditions,
foreign exchange fluctuations, competitive product and pricing pressures and
regulatory developments.
October 21, 2020
Mark Schneider, CEO
Nine-monthSales 2020
Key messages
4 Nestlé nine-month sales 2020
• Nestlé remained dependable and resilient in a difficult and volatile environment
• Organic growth of 3.5% led by sustained strong sales development in the Americas, Purina Petcare and Nestlé Health Science
• Retail sales saw strong growth, out-of-home channel remained under pressure
• Continued progress in portfolio transformation
• Decisive action on sustainability
• Organic growth expected to be around 3% for the full year
October 21, 2020
Building NHSc into a nutrition and health powerhouse
Nestlé nine-month sales 20205 October 21, 2020
Strong organic growth, fueled by science-based innovation
Consumer Care Medical Nutrition Nutritional Therapeutics
2019 2018 2020
2020Estimated
2021 / 2022Estimated
Sales in CHF billion
Targeted acquisitions to expand growth platforms and capabilities
2017
2.0
~3.3
On our way to doubling sales
~4.0
Our business as a force for good: Sustainable packaging
Nestlé nine-month sales 20206 October 21, 2020
Packaging reduction / elimination
Reusable / refillablepackaging systems
Materials innovation to facilitate recycling
Recycling / waste management infrastructure
Consumer behavior
2020 guidance updated
Nestlé nine-month sales 20207 October 21, 2020
• Full-year organic sales growth around 3%
• Underlying trading operating profit margin to improve
• Underlying earnings per share in constant currency and capital efficiency to increase
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Nine-monthSales 2020François-Xavier Roger, CFO
Nine-month sales growth
-5.5%
-7.4%
9M-2019 salesCHF bn
RIG Net M&A 9M-2020 salesCHF bn
+3.3%
-3061.9
Pricing
68.4
Foreign exchange
OG +3.5%
Reported sales growth -9.4%
+0.2%
9 Nestlé nine-month sales 2020October 21, 2020
Contrasted momentum by channel
10
Out-of-home*
* Includes Nestlé Professional, foodservice activities of Nespresso, Starbucks products and water, travel retail and Blue Bottle
9M-2019 9M-2020
Organic growth
9M-2019 9M-2020
Nestlé nine-month sales 2020
3.7%
7.1%
Retail
-31.5%
3.8%
October 21, 2020
5.7%6.9%
8.6%
Strong growth in retail sales
11 Nestlé nine-month sales 2020
Q1-2020 Q2-2020 Q3-2020
Q1-2020 Q2-2020 Q3-2020
Out-of-home*Retail
* Includes Nestlé Professional, foodservice activities of Nespresso, Starbucks products and water, travel retail and Blue Bottle
Organic growth
October 21, 2020
-11.2%
-54.7%
-26.4%
Positive growth across all geographies
12 Nestlé nine-month sales 2020
Each geography includes Zones, Nespresso, and Nestlé Health Science
Sales(in CHF)
RIG
Pricing
OG
AMS EMENA AOA
27.7 bn 18.0 bn
5.7% 2.4%
0.5% -0.2%
16.2 bn
0.3%
0.3%
6.2% 2.2% 0.6%
October 21, 2020
Strong real internal growth in developed markets
13 Nestlé nine-month sales 2020
Sales (in CHF)% of Group sales
36.1 bn58%
25.8 bn42%
4.9% 1.3%
-1.0% 1.5%
3.9% 2.8%
RIG
Pricing
OG
Developed Emerging
October 21, 2020
Zone AMS
14 Nestlé nine-month sales 2020
• Strong momentum, supported by positive RIG and pricing
• North America continued to see mid single-digit growth, led by Purina PetCare, coffee and frozen food
• Growth in Latin America reached a high single-digit rate, led by Brazil and Chile
Sales CHF 25.0 bn
Real internal growth +4.7%
Pricing +0.4%
Organic growth +5.1%
October 21, 2020
Zone EMENA
15 Nestlé nine-month sales 2020
• Increased organic growth based on solid RIG, with broad-based market share gains
• All regions contributed positively, with strong momentum in Russia, the United Kingdom and France
• Coffee, Purina PetCare and culinary all continued to report double-digit growth in retail sales
Sales CHF 15.0 bn
Real internal growth +3.3%
Pricing -0.4%
Organic growth +2.9%
October 21, 2020
Zone AOA
16 Nestlé nine-month sales 2020
• Flat organic growth, reaching a mid single-digit rate in the third quarter
• China saw a sales decrease, with growth turning positive in the third quarter. Other regions posted mid single-digit growth
• By product category, the main growth contributors were dairy, culinary, coffee and Purina PetCare
Sales CHF 15.3 bn
Real internal growth -0.2%
Pricing +0.2%
Organic growth 0.0%
October 21, 2020
Other Businesses
17 Nestlé nine-month sales 2020
• Nespresso saw mid single-digit organic growth, with strong momentum in e-commerce and the Vertuosystem
• Nestlé Health Science posted double-digit organic growth, supported by continued strong demand for consumer care and medical nutrition products
Sales CHF 6.7 bn
Real internal growth +6.8%
Pricing +0.6%
Organic growth +7.4%
October 21, 2020
Contrasted category dynamics
18 Nestlé nine-month sales 2020
Milk productsand Ice cream
8.2%
Confectionery
-1.8%
Prepared dishesand cooking aids
4.5%
10.6%
PetCarePowdered and Liquid Beverages
3.1%
Total Group
3.5%
-7.9%
Water
Nutrition and Health Science
1.5%
Organic Growth %
October 21, 2020
Nine-monthSales 2020Q&A
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Nine-monthSales 2020Supporting slides
9M-2020 Operating segments – topline summary
21 Nestlé nine-month sales 2020
9M-2020 sales
Sales RIG Pricing OG Net M&A F/XReported
sales growth
(CHF m) % % % % % %
Zone AMS 24 991 4.7 0.4 5.1 -5.7 -8.9 -9.5
Zone EMENA 14 952 3.3 -0.4 2.9 -1.7 -6.2 -5.0
Zone AOA 15 251 -0.2 0.2 0.0 0.0 -6.7 -6.7
Other Businesses 6 718 6.8 0.6 7.4 -24.0 -6.1 -22.7
Total Group 61 912 3.3 0.2 3.5 -5.5 -7.4 -9.4
October 21, 2020
9M-2020 Products – topline summary
22 Nestlé nine-month sales 2020
9M-2020 sales
Sales RIG Pricing OG
(CHF m) % % %
Powdered and liquid beverages 16 219 2.9 0.2 3.1
Water 5 020 -6.6 -1.3 -7.9
Milk products and ice cream 8 114 6.6 1.6 8.2
Nutrition and Health Science 9 004 1.1 0.4 1.5
Prepared dishes and cooking aids 8 460 4.6 -0.1 4.5
Confectionery 4 713 -0.6 -1.2 -1.8
PetCare 10 382 10.0 0.6 10.6
Total Group 61 912 3.3 0.2 3.5
October 21, 2020
9M-2020 Historical eight quarters
23 Nestlé nine-month sales 2020
Period RIG%
Pricing%
OG%
Q4-2018 2.8 0.9 3.7
Q1-2019 2.2 1.2 3.4
Q2-2019 3.0 0.9 3.9
Q3-2019 3.9 -0.2 3.7
Q4-2019 2.5 0.5 3.0
Q1-2020 4.7 -0.4 4.3
Q2-2020 0.5 0.8 1.3
Q3-2020 4.8 0.1 4.9
October 21, 2020
9M-2020 Currency overview
24 Nestlé nine-month sales 2020
Weighted average rate
9M-2019 9M-2020 Variation in %
US Dollar 1 USD 0.994 0.950 -4.4%
Euro 1 EUR 1.118 1.068 -4.5%
Chinese Yuan Renminbi 100 CNY 14.490 13.574 -6.3%
Brazilian Real 100 BRL 25.574 18.745 -26.7%
Philippine Peso 100 PHP 1.912 1.899 -0.6%
UK Pound Sterling 1 GBP 1.267 1.206 -4.8%
Mexican Peso 100 MXN 5.166 4.394 -14.9%
Canadian Dollar 1 CAD 0.748 0.700 -6.5%
Japanese Yen 100 JPY 0.912 0.884 -3.1%
Australian Dollar 1 AUD 0.698 0.642 -8.1%
Russian Federation Ruble 100 RUB 1.530 1.335 -12.8%
October 21, 2020
Abbreviations
25 Nestlé nine-month sales 2020
• OG
• RIG
• AMS
• EMENA
• AOA
Organic growth
Real internal growth
Zone Americas
Zone Europe, Middle East, and North Africa
Zone Asia, Oceania, and sub-Saharan Africa
October 21, 2020